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Home , Beniamino Andreatta, Claudio Martelli, Enrico Mattei, Flaminio Piccoli, Francesco De Lorenzo, Gianni De Michelis

Click here for Full Issue of EIR Volume 20, Number 16, April 23, 1993

question quoting at length from EIR and L'ltalia, and asking the government about the meeting on board the queen's yacht. After that, the story, this time a real scandal, broke out widely in the press. How the 'revolution' Another member of Parliament, Raffaele Tiscar (DC), has raised a similar interrogatory, quoting EIR's dossier. A member of the government,Treasury Director General Mario in Italyunfolded Draghi, has admitted that he was on the yacht, but claims by Claudio Celani that he left early-unlike other cabinet members who stayed. EIR has learned that the cabinet member Draghi referred to is , present budget minister and leader The London Economist calls it a "revolution" that has bro­ of the radical privatizers' faction. This information was used ken out in , and cheers at the destabilization of the by Parlato for a third parliamentary question. Italian state that has developed over the past two years. I n the Even , a man famous for his "flexibility" chronology that follows, we trace the assault on Italy, the (i.e., compromises with the Anglo-Americans), started to efforts that certain nationalist forces are making to block it, accuse "international financial circles" of being behind the and the role that EIR and Lyndon LaRouche are playing in attacks against him and the DC. The leaders of the DC groups that battle. in the House and the Senate sent a joint request to the prosecutors to investigate a suspected "conspiracy" against 1992 "republican institutions." Feb. 17. Beginning of "Operation Clean Hands" (Mani Such steps break the controlled environment established Pulite). Mario Chiesa, a Socialist Party-connected manager by the Anglo-Americans, which forces Italian leaders to fight of a home for retired people, is arrested while taking a kick­ one another in the belief that their enemies, or those who pull back of7 million lira ($4,000) for a cleaning contract. Using the strings of the destabilization, are to be found inside the a recently introduced "American-style" criminal code, such country. This is only partially true, since they are so only by as plea-bargaining, the magistrates offer him his freedom in being, as LaRouche said, assets of Anglo-American net­ exchange for revealing the names of others who are eventual­ works. ly implicated in the corruption case. Chiesa is reported to be Before Easter, when L'ltalia magazine again quoted head of a local masonic lodge. The "sting" against Chiesa EIR's analysis of the destabilization of Italy, La Voce Repub­ was carried out by captain Roberto Zulia­ blicana, the organ of the Republican Party, a party which ni, who will lead all subsequent "Milanogate" operations, in has always supported the IMF line for Italy, responded with tandem with Judge , until November. To fury, attacking the editor of L'ltalia, while quoting only obtain "proof' from witnesses, the investigators simply keep from ElR-although without mentioning it. Indeed, EIR has them in jail until they talk. Often "confessions" are recorded touched exactly the right nerve. in the absence of any defense lawyer. The credibility achieved by LaRouche and his movement March. In the middle of the election campaign, Socialist has brought 63 members of the to sign a Party leader and former premier , announcing call to President Clinton to free the American political prison­ his candidacy for leading the next government,gives an inter­ er. The signatures were presented on April 2 in the Italian view to Corriere della Sera in which he pushes for a big Parliament, by , secretary general of the Radi­ infrastructure development plan for Italy. cal Party, and by Flaminio Piccoli, a senator and historical March 12. Salvo Lima, the most powerful Christian leader of the Christian Democracy (EIR, April 16, p. 30). Democrat in , is assassinated by the mafia. Flaminio "The campaign against LaRouche," Piccoli said, "occurred Piccoli, a senior Christian Democratic leader, writes that largely because he annoyed the big American corporations, the murder reflects a "strategic design" in the interests of because, had he become President, he would have limited someone who wants an Italy removed from Europe. their power." "I am convinced," Piccoli said, "that many of March 21. Grand Orient master Giuliano Di Bernard!> the things occurring in our country are due to mistakes by orders the dissolution of the American covert freemasonic political responsibles, but largely also led and directed by lodge Coloseum. Di Bernardoannounces that he will vote for those who are interested in weakening Europe." , Craxi's rival in the Socialist Party (PSI). If they want to save their nation, Italian leaders will have March 29. One week before the elections, the Economist to tum their resistance into a policy that will promote a real magazine of London invites to vote for the Northern economic recovery, by abandoning the IMF's recipes, as League. The Italian state must be reduced to "rubble," the well as illusions of about a European free-market zone, and magazine says. instead adopting LaRouche's "Productive Triangle" ap­ AprilS. Parliamentary elections. The League proach. is the winner, but the traditional parties could still maintain

EIR April 23, 1993 Investigation 53

© 1993 EIR News Service Inc. All Rights Reserved. Reproduction in whole or in part without permission strictly prohibited. dermining the stocks and bonds of the Italian state and private companies traded on the stock exchanges. June 2. Secretive meeting takes place on board Queen Elizabeth's yacht Britannia in Ithe Tyrrhenian Sea, of the top financial and economic leaders of the Anglo-American establishment, with high-level I anagers of the Italian state and private companies, and higH officials of the government, to plan the privatization of the Iialian state-run companies. June 11-12. Meeting at the I gnelli Foundation, in Turin, to discuss "macro-regions," and the possibility that the north­ 1 ern Italian region defined by t e Po River (Padania) could become an entity in itself. Among the participants is Northern League ideologue Gianfranco Miglio. June. The number of accu�ed prominent businessmen

and politicians rises to more thkI n 40. Police announce that a �rominent Socia!ist, Deputy oroni, killed himself after . gomg to see mvesttgators. r July 17. The Italian government announces that it does not intend to guarantee the deb� of the state company EFIM outside of Italy (about $6 billioh The government offers to repay 80% of the debt, at a 10Jer interest rate. The govern­ ment's argument is that by ha ing given loans at a market interest rate, the creditors kn9w they were taking a risk. International banks refuse to negotiate on this basis. Former Prime Minister Giulio Andreotti, considered to be the July 19. Judge Paolo B0rsellino is assassinated in most powerful man in Italy, is now under investigationJor alleged . ties to the mafia. He blames people in the United StatesJor the July. Chamber of Deputies Iagrees to wai ve parliamenta­ assault under way against the Italian political system. l ry immunity of five MPs. A total of 13 MPs and former ministers are now under investikation by magistrates. a limited majority to form a new government. Bettino Craxi Nine more are being investigated in other parts of the country. is the main candidate for the office of prime minister. Salvatore Ligresti, the king of donstruction in Milan and one May. The scandal enters its third month, with the charg­ of Italy's richest men, is arrest�d. He will stay in prison for ing of two leading figures in the construction industry. Six several months, until he decidek to confess. other prominent people in the industry have already been July 27. Lombardia Autonbmista, organ of the Lombar­ charged. Enzo Papi, managing director of Fiat's large build­ dy section of Northern Leagub, reports that the American ing subsidiary, is detained. In all, 26 businessmen, municipal magazine Telos, edited by Pau Piccone, dedicates 80 pages officials, and local politicians have now been arrested on to the League, pushing it as a model for the rest of Europe, corruption charges. "an alternative to the more abd more discredited central April. resigns as President of the Re­ state." public. The new Parliament will have to elect a new President Aug. 13. Moody's downg I ades its rating of the Italian before voting for a new government. economy from AA-l to AA-3. May 23. Judge is assassinated. The Aug. 23. U. S. Schiller Insftute leader Amelia Robinson U. S. FBI offers to aid in investigations. Justice Minister speaks in Rimini on the LaRouche case, receiving coverage Martelli accepts. Former New York U. S. Attorney Rudolph in the national press. Giuliani intervenes, suggesting that the death penalty be ap­ August. International speculationI against the Italian lira plied. and other European currencies begins. I May 25. is elected President of the Sept. 13. After the first wave of massive attack, the Republic. Italian government and the BaJk of Italy decide to devaluate June. The outgoing minister for public works is served the lira by 7%. The stock exch�nge in Milan is closed down. notice by Rome's magistrates that he is under investigation. Italy leaves the European Mon�tary System (EMS). Craxi agrees to withdraw his candidacy for the post of prime Sept. 16. Black Wednesd�y. After a second, stronger minister. , also a Socialist, forms a gov­ wave of speculation, the Italiap lira is devalued once again. ernment. The British pound and the Spanish peseta are also devalued June. Moody's decides to downgrade Italy's rating, un- and leave the European Monetkry System (EMS).

54 Investigation EIR April 23, 1993 Oct. 3-6. Goldman Sachs predicts a "stabilized" value moderate it. It is still, however, a plan to sell off piecemeal of the lira for 990 against the deutschemark, in 18 months. important sectors of the Italian public industry and banks. Oct. 6. The Northern League's Bossi invites Italians not The IMF approves it. to buy Treasury bonds at the next public auction, and instead Nov. 27. Conference of EIR and the Schiller Institute on to invest their money abroad. The government asks magis­ the late industrial leader Enrico Mattei, in Milan, receives trates to investigate whether Bossi's statements constitute a coverage in Il Giarna and A vanti, especially on the connec­ cnme. tions between the assassinations of Enrico Mattei, John F. Oct. 9. The International Monetary Fund (lMF) orders Kennedy, , and Alfred Herrhausen. an investigation of international capital flows, to be conduct­ Nov. 30. Antonio and Gianni Cipriani publish an article ed by a group chaired by . in L' Unita exposing the destabilization of Europe, and in Oct. 10. Goldman Sachs opens an "operational office" particular the Nazi-skinhead phenomenon against Germany, in Milan. which they attribute to the KKK and Southern Jurisdiction Oct. 13. Moody's announces that they are "watching" masonic networks. the position of Fiat. The operation involves Fiat subsidiaries Dec. 6. Freemasonry claims to be victim of a "persecu­ such as Fiat Finance and Trade, Fiat Deutschland, Fiat Fi­ tion" by Judge Cordova and calls for help from international nance U. S. A. , and Fiat , all of which presently have "brothers. " the maximum rating, "prime one." December. Craxi is told he is under investigation by Oct. 15. Judge Di Pietro and Captain Zuliani leave for a Milan magistrates. Parliament agrees to waive immunity for "study trip" to the United States, organized by the Milan . Pressures mount on Craxi to resign as U. S. Information Service (USIS) . Members of the delegation PSI secretary general. include Nando Dalla Chiesa, environmentalist guru Chicco December. Northern League wins elections in several Testa (PDS), sociologist Renato Mannheimer, amd La Re­ cities in northern Italy. Bossi announces that he has dropped pubb/ica journalist Cinzia Sasso. They will meet FBI and the idea of a separatist North and declares that the League is Justice Department experts and will participate in classes on ready to join a "government of technicians. " "new American methods in fighting white-collar crime." December. The lira comes under attack again, this time Oct. 16. President Scalfaro, visiting Berlin, warns of the because of "Italy's political uncertainty" (Financial Times). danger of a dictatorship in Italy. Dec. 15. is considering reintroducing forms Oct. 20. Edward Luttwak of Georgetown University's of control on capital flows, when the flows become anoma­ Center for Strategic and International Studies is in Rome, lous-i. e. , speCUlative. lecturing Italian officials and military personnel, warning that "the state's slowness in fulfilling the demand for decen­ 1993 tralization could trigger a climate of tension and violence. " Jan. 12. Treasury Minister and Bank of Oct. 21. Repubb/ica del Nord, organ of the Northern Italy officials present to the financial community in London, League, publishes a report which forecasts the dissolution of their plan for privatizing Italian public industry. the Italian nation into five small states within six years. State January. Magistrates announce that Paolo Berlusconi, Department officials interviewed support this scenario. the younger brother of media magnate , Oct. 27. Judge Agostino Cordova starts from Palmi, in will be put on trial. He is the latest of 35 businessmen and Calabria, a wide-ranging investigation into masonic covert politicians who, magistrates say, will go to trial. Magistrates lodges, which, he has discovered, are used as channels be­ widen their investigations to include the reorganization of tween politicians and mafiosi. He exposes a series of covert the chemicals industry in 1990. Under investigation are , lodges all over Italy. Cordova will seize the central computer the Ferruzzi group's Montedison, and Anas, the state road­ of the Grand Orient Lodge. In his hands now is a full list of building authority. The number of persons arrested since the magistrates who are members of Freemasonry. He will hand beginning of the scandal exceeds 100. it over to Justice Minister Martelli, who has so far tried to Jan. 14. EIR releases a memorandum in Italy on "The stop him by all means, and to the Superior Council of the Anglo-American Strategy Behind Italian Privatizations." Magistracy. Cordova issues 129 indictments, including one Jan. 18. A Northern Jurisdiction of Italian Freemasonry to , the exiled former head of the Propaganda-2 is officially founded, as a split from the Grand Orient. It is masonic lodge, whose activity has never ceased. called "Real Order" and is led by Michele Moramarco, Nov. 2. Repubblica press agency in Rome publishes an known as a "spritualist." Moramarco agrees with the League interview with Lyndon LaRouche on the destabilization of federalist project and is connected to "old Catholic" net­ Italy. works. Nov. 16. The Amato government presents its plan for the Jan. 21. A public meeting is organized at the Milan US IS privatization of Italy's state sector industry. After a radical office, to discuss how to reform the Italian system of party form of it had been leaked to the press, Amato is forced to financing. Participating is Judge Piercamillo Davigo, mem-

EIR April 23, 1993 Investigation 55 This testament by Aldo Moro was itten while he was a captive of the Red Brigades in 197 .In it. he names Henry Kissinger (shown here as the Trojan Horse in a 1983 cartoon by Claudio Celani) as the person 0 rhestrating the demolition of Italy's political system, in favor Qf one that "speaks English. "

from Secretary of State Kissi ger, who out of realism continued to aim at the DC, but Aiming at a new, youthful, technologically equipped and �o longer that traditional AIdoMoro's prophetic and unsophisticated [DC] to "hich 1 belonged. Young parliamentarians begin to systematically frequent the em­ warning bassy (1 know, for example, a�out [name illegible] and Segni; I don't imagine that De Carolis, Rossi, and others In his political testament, written while prisoner of the Red would have been so gladly accepted). So we had here, not Brigades in 1978, Christian Democracy (DC) President by the initiative of the ambasSador, but from the State Aldo M oro warned against a new generation of politicians Department itself, a change in r�lations, which prefigured whom U.S. Secretary of State Henry Kissinger was pro­ an Italy which among other thin. s speaks English, is more moting to replace the historical leadership of the Chris­ homogeneous with a more sophisticated and so to speak tian Democracy. In that document, which was discovered more international world that w�s being delineated. only last year in the Red Brigades safehouse in Milan, With Ambassador [Richard� Gardner I had, as I said, Moro wrote: few relations and all centered 9n the situation, explained with the greatest objectivity. qardner was very correct, . . . It was a matter of, as far as I found out, a directive he always read and explained tlie American position. I

ber of the "Clean Hands" pool of judges. Hooked up via masonic investigation. satellite, from the United States, is the chairman of the Feder­ Jan. 29-30. Police raid the ffices of the Italian Socialist al Election Commission, Scott Thomas. Party and its newspaper Avan i, in Rome. Craxi is served Jan. 29. Judge Agostino Cordova reveals that Justice with a second notice of investi ation by Milan magistrates. � Minister Claudio Martelli has so far refused to give him the February. Constitutional palance of power is close to necessary rooms and computers in Rome to start processing being violated when Milan magistrates send police to the the enormous amount of material he has seized in the anti- Parliament. The news is kept sl cret for three days, until the

56 Investigation EIR April 23, 1993 magistrates make an official self-criticism. Feb. 26. Standard & Poor's announces a downgrading of February. A star witness, Larini, comes back to Italy. the Italian credit rating. Strong reactions come from Scalfaro, Waiting for him at the border are Judge Di Pietro and Captain the Bank of Italy, the Treasury, and various politicians. The Zuliani. Larini' s revelations force the resignation of Claudio lira rises. Martelli, the Socialist justice minister. The number of sepa­ March 2. Craxi is called before a parliamentarycommit­ rate notices of investigation to Craxi increases to six. Craxi tee to decide whether or not to waive his immunity. He reads resigns and Giorgio Benvenuto is elected by the Craxian a memorandum arguing that there is an internal plot against majority as new secretary general of the PSI. Martelli is him, but at the end of the hearings, he hands out to a journalist replaced with , a well-reputed constitutional­ EIR's memo on the privatization fight. ist who, in his first speech, gives a dramatic picture of the March 2. After his brother is arrested, economic damage created by the Milan investigations in resigns from the important chairmanship of the joint Commit­ terms of unemployment and economic paralysis. tee on Constitutional Reforms, which is deciding on the new February. A split develops among the "Operation Clean electoral . Hands" judges. Judge Di Pietro, after Larini's confessions, March 3. The general staffs of Lazard and Lehman announces that the investigations could proceed endlessly Brothers are in Rome, meeting government officials and and that therefore he is in favor of a "political solution." The bankers, to discuss privatization. One member of the delega­ other judges do not endorse this view. On the basis of the tion is former CIA and Pentagon chief James Schlesinger. general consensus around Di Pietro's statements, the govern­ March 3. La Stampa tells the story of EIR' s memo being ment feels authorized to start working on legislation that given out by Craxi, without mentioning EIR. Parliamentary would no longer prosecute illegal party financing. deputy Antonio Parlato (MSI) submits a parliamentary ques­ Feb. 3. L'Italia magazine covers EIR' s memorandum on tion on the issue, quoting from L' Italia' s article and men­ the Italian privatization strategy, exposing the British plot tioning EIR. In a meeting of the budget committee of the cooked up on board the queen's yacht. Parliament, Treasury Director confirms his Feb. 19. The Economist announces that the "Italian revo­ participation in the meeting on the queen's yacht, but ex­ lution" has begun. The Wall Street Journal has three articles plains that he left soon after his speech. on the same line. March 7. The government approves legislation written Feb. 19. Health Minister (PLI) by new Justice Minister Giovanni Conso, which makes ille­ and Finance Minister (DC) receive notices gal party finances no longer a criminal offense. The legisla­ of investigation and resign, shaking the Amato government. tion, an executive order, would prevent judges from arresting Christian Democratic leader ' s former secre­ people before sentence. Another partof the legislation would tary, Enzo Carra, is arrested. The lira comes under attack. allow many companies to start construction works again, The Republican Party's resigns immediate­ stopping the enormous damage caused by the Milan investi­ ly after being informed that he is under investigation. More gation, in terms of jobs and money lost to the economy. than 50 deputies and senators are caught up in the various In reaction to the government initiative, the Milan judges investigations. denounce it as "unacceptable." President Scalfaro bows to Feb. 16. Industry Minister Giuseppe Guarino publishes this unprecedented move and refuses to sign Amato's decree. his "plan for strengthening the Italian productive system," March 8. L'Italia announces in a release the content of in which he advocates restructuring and privatizing public its next issue: major reportage on "the plot against Italy." industry, at the same time keeping its control in national March 10. Corriere della Sera headlines "Beelzebub on hands. the Yacht," citing EIR as the source for the story of the "plot" Feb. 20. Business Week writes that the Italian case is not which is being exposed in the Italian Parliament. isolated, but that corruption is sweeping Germany, Spain, March 27. Palermojudge issues announcement of inves­ and France as well. tigation against leading Christian Democrat and former Feb. 21. Amato replaces De Lorenzo with Costa (PLI) Prime Minister Giulio Andreotti. and Goria with Beniamino Andreatta (DC). The entrance of April 2. The Christian presents an es­ Andreatta strengthens the free-market faction in the govern­ posto (legal petition) to the chief prosecutor of Rome, calling ment. Amato deprives Minister Guarino of his responsibility for an investigation to determine whether there is a "political for the privatization issue; the new privatization czar is conspiracy" afoot to destroy Italian "constitutional institu­ Olivetti manager Paolo Baratta. Guarino announces that he tions." is not giving up. His support in Parliament grows. AprilS. Milan judges launch probe against Andreotti. Feb. 22. Two top Fiat managers, Francesco Paolo Matti­ April 7. Andreotti charges, in an interview published in oli and Antonio Mosconi, are arrested. The lira is in free fall. , that some people in the United States are behind Feb. 2S. Moody's announces another review of the Ital­ the accusations against him. "For the moment, I will add ian debt. nothing more," he says.

EIR April 23, 1993 Investigation 57